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National Bank of Canada Sheds Bitcoin ETF Holdings With Volatility Hedging

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National Bank of Canada Sheds Bitcoin ETF Holdings With Volatility Hedging

Key Points:

  • National Bank of Canada exercised a put option to sell over $1.3 million in BlackRock’s iShares Bitcoin Trust ETF.
  • While Canada’s largest bank reduced its exposure to Bitcoin, Bank of Montreal invested approximately $150 million in Bitcoin through spot ETFs.

The National Bank of Canada has taken a cautious stance on Bitcoin, as revealed in a recent filing with the U.S. Securities and Exchange Commission (SEC).

Read more: Bank of Canada’s Report Sparks Fresh Insights into CBDC Adoption  

National Bank of Canada Reduces Bitcoin ETF Holdings

The National Bank of Canada disclosed that it had exercised a put option to sell over $1.3 million worth of shares in BlackRock’s iShares Bitcoin Trust ETF.

The decision comes amid ongoing outflows from Bitcoin ETFs, driven by global economic uncertainty and market reactions to trade tensions. Investors have been shifting away from riskier assets, favouring safer financial instruments.

Despite this, the National Bank of Canada acknowledges that Bitcoin ETFs provide exposure to the cryptocurrency without the complexities of direct ownership and regulatory concerns. Canada has been at the forefront of Bitcoin ETF adoption, with financial institutions playing a key role in promoting the market.

Canadian Banks Take Diverging Approaches to Bitcoin

While the biggest Canadian bank is reducing its Bitcoin exposure, another is increasing its investment. Bank of Montreal (BMO), Canada’s third-largest bank, has quietly accumulated a significant stake in Bitcoin ETFs.

According to an SEC filing, BMO has invested approximately $150 million in Bitcoin through spot ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) makes up the bulk of this investment, accounting for $139 million. The remainder is spread across Ark 21Shares Bitcoin ETF (ARKB), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Trust (GBTC).

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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John Kojo Kumi

15 February 2025, 05:22:12 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.

He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency.

His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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